Market In Correction: 5 ETFs Surviving The Slump

Wall Street has been on a tumultuous ride over the past three months, with all the three major indices slipping into correction territory. Myriad woes ranging from U.S.-China trade tension to global growth concerns led to the terrible performances. With the recent slump, the S&P 500 is on track for its biggest quarterly loss since the third quarter of 2011.

The slew of weaker-than-expected economic data out of China and Europe last week added to the woes that sparked fresh worries about the world’s second-biggest economy and prospects for global growth. In particular, Chinese industrial output and retail sales for November missed the analyst forecast, while Europe’s IHS Markit’s purchasing manager’s index showed that the German and French private sectors slowed down in November. Meanwhile, purchasing managers index readings for the U.S. manufacturing and services sectors also fell to multi-month lows, indicating that activity is expanding at a slower pace.

Further, investors exited more than $46 billion from U.S. equity mutual funds and ETFs in the week (Dec 5-12), representing the largest weekly outflow since Lipper began tracking weekly flows in 1992. According to the latest survey of the American Association of Individual Investors, bearish sentiment (expectations that stock prices will fall over the next six months) jumped 18.4 percentage points to 48.9% in the seven-day period ended Dec 12, while bullish sentiment (expectations that prices will rise over the next six months) fell 17 percentage points to 20.9% -- its lowest since May 25, 2016, and below its historical average of 38.5% for the 12th time in 14 weeks.

However, there are still winners in many corners of the market that are easily surviving the slump. Below we have highlighted five ETFs from different corners of the market that have traded in the green in three months and will likely to continue to do so should the trends prevail.

AdvisorShares Ranger Equity Bear ETF (HDGE - Free Report)

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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